VS Code makes no progress when trying to debug a PS script when there's an invalid "watch" variable set

Prerequisites

• I have written a descriptive issue title.
• I have searched all issues to ensure it has not already been reported.
• I have read the troubleshooting guide.
• I have verified that I am using the latest version of Visual Studio Code and the PowerShell extension.

Summary

I am trying to debug a VS script, which freezes VS Code. The "pause" button does not work, neither does "restart". The "stop" button seems to stop things, but I starting debugging again does nothing. Restarting Code lets me hit the first bp I have set, but continuing gets me back in the stuck state. I've narrowed this down to an innocent looking "watch" statement I've previously set from the VS Code context menu on one of the autos. Removing the watch makes things work again.

PowerShell Version

$PsVersionTable


Name                           Value
----                           -----
PSVersion                      7.1.5
PSEdition                      Core
GitCommitId                    7.1.5
OS                             Microsoft Windows 10.0.19043       
Platform                       Win32NT
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0…}
PSRemotingProtocolVersion      2.3
SerializationVersion           1.1.0.1
WSManStackVersion              3.0

Visual Studio Code Version

code --version

1.61.1
c13f1abb110fc756f9b3a6f16670df9cd9d4cf63
x64

Extension Version

code --list-extensions --show-versions | Select-String powershell


ms-vscode.powershell@2021.10.0

Steps to Reproduce

.

Visuals

No response

Logs

No response

No source file, test, or reproducible command is named. Start by reproducing the freeze in VS Code with PowerShell 7.1.5, the listed extension and an invalid watch expression, then compare debugging behavior with and without that watch. Done means pause, restart, stop, and continue work reliably in the reported scenario.